Close
  • Latest News
  • Cybersecurity
  • Big Data and Analytics
  • Cloud
  • Mobile
  • Networking
  • Storage
  • Applications
  • IT Management
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Menu
eWEEK.com
Search
eWEEK.com
  • Latest News
  • Cybersecurity
  • Big Data and Analytics
  • Cloud
  • Mobile
  • Networking
  • Storage
  • Applications
  • IT Management
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Apple
    • Apple
    • Networking
    • PC Hardware

    Apple’s $600 Mac Mini Costs Nearly $400 to Make, Says iSuppli

    By
    MICHELLE MAISTO
    -
    June 28, 2009
    Share
    Facebook
    Twitter
    Linkedin

      iSuppli’s latest teardown was of the Apple Mac Mini desktop computer.
      Tearing down and tallying up the components of the tiny cube-which measures just 2 inches high by 6.5 inches long and wide, and has a retail starting price of $599-iSuppli determined it has a bill of materials of $376.20. That number jumps to $387.14 when manufacturing costs are tacked on.
      Additionally, not included in the analysis, iSuppli points out in a statement on its findings, are the costs “above and beyond the material manufacturing of the core device itself-i.e., the cost of intellectual property, royalties and licensing fees-as well as those expenses not already included into the per component price, software, software loading and test, shipping, logistics marketing and other channel costs.”
      Inside the Mac Mini, iSuppli found a 2GHz Intel Core 2 Duo P7350 microprocessor, which it estimates to cost $118.35. Other higher-priced components include an Nvidia GeForce 9400M graphics card and I/O controller hub, priced at $65.16; a Hitachi 120GB hard drive, for approximately $46; and a Pioneer DVD+R drive, for $32.
      “Unlike most desktop computers from other brands, the Mac Mini and, indeed, Apple’s entire Mac line make extensive use of components designed for notebook computers,” said Andrew Rassweiler, director and principal analyst of iSuppli, in a statement on the results.
      While this enables Apple to achieve compact form factors and reduced energy consumption, Rassweiler continued, “the use of these components, along with other cost adders like software, yields a computer that is more expensive to make.”
      Put another way, Ezra Gottheil, an analyst and Apple specialist with Technology Business Research, said that with a device like the Mac Mini, “the consumer gets the most bang for his buck.”
      Gottheil said that from computers to cars, when a manufacturer offers a range of product options, from bare bones to decked-out, it makes the least money on its simplest offering.
      “If you get a stripped-down model, you really are getting, in terms of the profit model, the best deal,” Gottheil told eWEEK.
      “The perception is that Apples are way more expensive, but the components are considerably more expensive [than those in some other PCs]. For a straightforward-pardon the expression here-Apples to Apples comparison, if you go to vendors and order all the same components, you’re going to wind up at about that price.”
      Gottheil estimates that in the fourth quarter of 2009, Apple made an approximately 36.4 percent gross profit, but-after research, marketing, advertising and the other costs that indirectly go into a device-that number is slimmed down to 20.4 percent.
      “So basically, for a product like the Mini, they’re making $100,” Gottheil said.
      The bottom line?
      “It’s a very nice PC for the money,” said Gottheil, “but you have to want all the performance you get.”

      MOST POPULAR ARTICLES

      Android

      Samsung Galaxy XCover Pro: Durability for Tough...

      CHRIS PREIMESBERGER - December 5, 2020 0
      Have you ever dropped your phone, winced and felt the pain as it hit the sidewalk? Either the screen splintered like a windshield being...
      Read more
      Cloud

      Why Data Security Will Face Even Harsher...

      CHRIS PREIMESBERGER - December 1, 2020 0
      Who would know more about details of the hacking process than an actual former career hacker? And who wants to understand all they can...
      Read more
      Cybersecurity

      How Veritas Is Shining a Light Into...

      EWEEK EDITORS - September 25, 2020 0
      Protecting data has always been one of the most important tasks in all of IT, yet as more companies become data companies at the...
      Read more
      Big Data and Analytics

      How NVIDIA A100 Station Brings Data Center...

      ZEUS KERRAVALA - November 18, 2020 0
      There’s little debate that graphics processor unit manufacturer NVIDIA is the de facto standard when it comes to providing silicon to power machine learning...
      Read more
      Apple

      Why iPhone 12 Pro Makes Sense for...

      WAYNE RASH - November 26, 2020 0
      If you’ve been watching the Apple commercials for the past three weeks, you already know what the company thinks will happen if you buy...
      Read more
      eWeek


      Contact Us | About | Sitemap

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Property of TechnologyAdvice.
      Terms of Service | Privacy Notice | Advertise | California - Do Not Sell My Info

      © 2020 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×